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mel-nik [20]
3 years ago
6

Suppose the economy is operating at a point where output is less than the natural level of output. Which of the following statem

ents is correct given this information?
a) the price level is less than the expected price level.
b) the unemployment rate is less than the natural unemployment rate.
c) the price level will be higher next period than this period.
d) all of the above.
e) none of the above.
Business
1 answer:
laiz [17]3 years ago
3 0

Answer: a) the price level is less than the expected price level.

Explanation:

When the actual output in an economy is lower then the natural output it is called a Contractionary Gap and the price level will be lower.

This is because the Short Run Aggregate Supply Curve and the Demand curve will intersect at a lesser quantity which will equate to a lower price as well because the economy is producing less and the people are demanding less as well so the point at which they meet will be a lesser price.

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4 years ago
If the number of buyers of a good increases, the demand for the good will _____ and the demand for labor used to produce that go
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If the number of buyers of a good increases, the demand for the good will <u>increase</u> and the demand for labor used to produce that good will <u>normal</u>.

The logic behind the demand and supply model is straightforward. The volume of a specific commodity or service that consumers will be able and willing to buy over time at each price is shown by the demand curve.

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We should be able to determine a price where the quantity of items buyers are willing and able to buy equals the quantity of goods sellers are willing to offer for sale by combining the two curves.

To learn more about Demand And Supply Model here

brainly.com/question/12984251

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